Correlation Between PTT Global and TRI CHEMICAL
Can any of the company-specific risk be diversified away by investing in both PTT Global and TRI CHEMICAL at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining PTT Global and TRI CHEMICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Global Chemical and TRI CHEMICAL LABORATINC, you can compare the effects of market volatilities on PTT Global and TRI CHEMICAL and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in PTT Global with a short position of TRI CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Global and TRI CHEMICAL.
Diversification Opportunities for PTT Global and TRI CHEMICAL
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PTT and TRI is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding PTT Global Chemical and TRI CHEMICAL LABORATINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRI CHEMICAL LABORATINC and PTT Global is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on PTT Global Chemical are associated (or correlated) with TRI CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRI CHEMICAL LABORATINC has no effect on the direction of PTT Global i.e., PTT Global and TRI CHEMICAL go up and down completely randomly.
Pair Corralation between PTT Global and TRI CHEMICAL
Assuming the 90 days trading horizon PTT Global Chemical is expected to under-perform the TRI CHEMICAL. But the stock apears to be less risky and, when comparing its historical volatility, PTT Global Chemical is 1.28 times less risky than TRI CHEMICAL. The stock trades about -0.25 of its potential returns per unit of risk. The TRI CHEMICAL LABORATINC is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 1,750 in TRI CHEMICAL LABORATINC on October 25, 2024 and sell it today you would earn a total of 310.00 from holding TRI CHEMICAL LABORATINC or generate 17.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PTT Global Chemical vs. TRI CHEMICAL LABORATINC
Performance |
| Timeline |
| PTT Global Chemical |
| TRI CHEMICAL LABORATINC |
PTT Global and TRI CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PTT Global and TRI CHEMICAL
The main advantage of trading using opposite PTT Global and TRI CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Global position performs unexpectedly, TRI CHEMICAL can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in TRI CHEMICAL will offset losses from the drop in TRI CHEMICAL's long position.| PTT Global vs. Sims Metal Management | PTT Global vs. Ringmetall SE | PTT Global vs. MCEWEN MINING INC | PTT Global vs. Q2M Managementberatung AG |
| TRI CHEMICAL vs. Beazer Homes USA | TRI CHEMICAL vs. AAC TECHNOLOGHLDGADR | TRI CHEMICAL vs. bet at home AG | TRI CHEMICAL vs. Haverty Furniture Companies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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